if two company have same director and have same member, (but have not any invetment in each other) then this two company's financial statements are required to condolidate or not.
as this company have significant
control on each other
A company will be treated as an Associate company of another company, if the former is having
(1) atleast 20% of the total share capital of the later ;
OR
(2) having influence over the later's decision making process under and agreement
OR
(3) Both are Joint venture companies
So yes if through the Common director there is influenc e over the Decision making of the 2nd company by the 1st company then yes it needs to be consolidated. However please do note that just having a Common director does not make the other company a subsidiary/Holding/Asoociate as per the companies act, 2013
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